The SAR government has been urged to update its policies according to the changes in the macro-economy and residents' response when implementing its housing plan. Parker Zheng / China Daily

Real-estate veterans have cautiously greeted the government's new housing supply strategy, saying that while they welcomed the latest housing target, public cooperation in realizing the government's goal remains crucial to solving the city's land shortage problem.

The response came after the government on Tuesday pledged to increase its total subsidized housing supply for the next 10 years by 10,000 units to 480,000, with the aim of making it easier for people to move up the housing ladder.

"Clearly, the current land supply cannot meet the government's new target," said Andy Kwan Cheuk-chiu, director of the ACE Centre for Business and Economic Research. "That's why the community must cooperate with the government on certain policies. For example, greenbelt sites, or properties along the subway line, can all be used for residential purposes."

He stressed that certain redevelopment and re-planning projects should be placed on the agenda to meet the ever growing demand for homes which has far exceeded supply. He said as public discontent lingers on, it's crucial for the people to have faith in the new housing target to support the healthy development of the property market.

Vincent Cheung Kiu-cho, national director of Greater China at Cushman and Wakefield, agreed that the government must consider other land re-planning to meet its housing target. "The current land supply can only satisfy needs in the short term. In the longer term, we have to consider other land options, even controversial options," he said.

Buggle Lau Ka-fai, chief analyst at Midland Realty, called the new strategy a shot in the arm as housing demand continues to increase, while acting as a buffer to soaring residential property prices. But, he urged the government to monitor the homes market closely to decide when to release new flats and on what scale.

According to statistics from the Lands Department and Midland Realty, the number of completed public and private flats reached only 284,800 in the past decade, while 621,300 units were completed from 1994 to 2003.

Lau said the 480,000 target should compensate for the lack of completed apartments in the past 10 years although it's still 23 percent less than the 1994-2003 figure.

"While the housing supply target sets the tone for tighter regulation of the property market, other factors, such as economic changes and interest-rate hikes, can also incur potential adjustment in the residential sector. I believe the government should update its policies regularly and flexibly, while actively project its land sales program," he said.

Wong Leung-sing, senior associate director of research at Centaline Property Agency, also sounded a word of caution, warning that the government may be missing the core issue.

"The new public housing estates will be located in the suburbs. For the low-income group living there, they still have to worry a lot about high transportation costs and spending more time going to work every day. There's incompatibility between living and traveling," he said.

agnes@chinadailyhk.com

(HK Edition 12/17/2014 page8)